Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT

CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WHO PURCHASE PRODUCTS WITH HIGHER COST COMPONENTS

CHOICE 3 COMPONENT: CHANGE RELIABILITY AND PRICE TOGETHER

No.	SIC	Year	Notes
1	2834	1992	Johnson is charging $1,250 to $1,500 for a year's supply of Ergamisol (levamisole). That's a hundredfold higher than the $14 price tag on an older veterinary version of the drug. J&J says it's compensating for R&D costs over the years to determine use in humans.
2	3140	1993	Genesco also purchased the exclusive worldwide license to market Nautica footwear for men, women and children which is expected to benefit from the growing popularity of the Nautica apparel and accessories lines. The Nautica lines are primarily targeted to young and middle-aged adults and are more expensive relative to Dockers (Nautica sells for $98-$115 per pair versus the $50-$90 price range for the latter), and are presently sold at somewhat more upscale department and specialty stores.
3	3571	1987	Name brand IBM clones are priced around $1000 to $1300. Quality is better than lowest-end clones.
4	3639	1999	With a price tag of around $1,500, it [a Kirby vacuum] also costs more than four times what other top-of-the-line vacuum cleaners do.
5	4100	1987	A "black car" from Wall Street to Kennedy International Airport can cost $32, about 25% higher than a yellow cab.
6	5182	2003	Sidney Frank Importing Company has created a new brand for the nascent market in expensive "super premium" liquor. Grey Goose vodka appeared in late 1997 with a new marketing campaign. It usually consisted of young women handing out samples of vodka or bartenders at hotspots in key cities turning the $5 martini to a $15 drink. Grey Goose sold one million cases last year. Grey Goose is one of the few products that showed growth in the alcoholic-beverage market between 1997-2001.

<<Return to Choice 3